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Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
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01 overview
A license agreement is a legal document that allows a person or company to use another person’s or company’s intellectual property (IP) or products.
Intellectual property includes inventions, brands, software, music, and more.
Businesses can use a license agreement to make money from their IP without selling it outright. It’s like renting out a house – you still own it, but someone else pays you to live there.
Whether you're a business owner looking to license your intellectual property, a company seeking to use another's technology or brand, or a startup negotiating licensing terms, a well-drafted license agreement is important to protect your interests.
At Lawhive, our network of expert corporate lawyers understands the legal requirements and nuances involved in license agreements. As such, they provide tailored solutions that address your specific needs and objectives, whether you're the licensor or licensee.
From drafting, reviewing, and negotiating license agreements, our network of experienced lawyers is on hand to provide:
Contact us today to schedule a free case evaluation and quote for the services of a specialist corporate lawyer who can assist you in drafting effective license agreements.
A license agreement is a legal document that gives someone permission to use something that belongs to someone else, like intellectual property.
But what does that actually mean in practical terms?
Well, when you create something unique, you own the rights to it. If another person or company wants to use that creation, they need your permission. This permission can be given through a license agreement.
The agreement outlines how the other person or company can use your creation, how long they can use it, and what they need to pay you for it.
Businesses use license agreements to share and monetise their work while keeping ownership.
These agreements also provide legal protection by clearly outlining what is and isn’t allowed.
License agreements are commonly used when:
Intellectual property refers to creations of the mind that are protected by law. These can include:
There are main types of IP that can be licensed under an agreement:
| Types of IP | What it does | Common uses |
| Patents | Patents protect new inventions or discoveries. If you have invented a new product, process, or machine, you can get a patent for it. Licensing a patent allows other companies to use your invention in exchange for royalties or fees. | Industries like pharmaceuticals, technology, and manufacturing. |
| Trademarks | Trademarks protect symbols, names, and slogans used to identify goods or services. Companies license trademarks to let others use their brand name or logo on products. | A clothing manufacturer might license a popular sports team’s logo. |
| Copyrights | Copyrights protect original works of authorship, such as books, music, films, and software. Licensing copyrights allow others to use, distribute, or modify the work. | A song might be licensed for use in a movie or a book for adaptation into a film. |
| Trade Secrets | Trade secrets are confidential business information that gives a company a competitive edge. This can include formulas, practices, designs, or processes. | Companies can license trade secrets under strict confidentiality agreements to protect the information while allowing others to use it. |
| Design Rights | Design rights protect the visual design of objects. This includes the shape, configuration, pattern, or ornamentation that gives a product a unique appearance. | Licensing design rights allow others to manufacture and sell products with the protected design. |
Determining the scope of rights to grant in a license agreement involves considering the permissions you want to give the licensee and the restrictions needed to protect your intellectual property.
First, clarify the purpose of the license. What specific rights do you want to grant? For example, are you allowing the licensee to use, reproduce, distribute, or sell your intellectual property? Defining the purpose helps determine the exact rights needed.
Next, decide whether the license will be exclusive or non-exclusive.
An exclusive license means only the licensee has the rights to use the intellectual property, while a non-exclusive license allows you to grant the same rights to multiple parties.
Exclusive licenses often command higher fees but limit your ability to license to others.
Will the rights granted apply globally, regionally, or within a specific country?
Limiting the territory can protect your interests in different markets and allow you to manage how your IP is used in various locations.
It’s often beneficial to limit the license to a specific field of use. For example, if you are licensing software, you might restrict its use to educational purposes only, excluding commercial uses. This ensures the IP is used in a way aligned with your goals.
Ensure that your IP is used correctly and maintains its value by implementing quality control measures.
This can include guidelines for how the IP should be used, periodic reviews, and the right to terminate the agreement if quality standards are not met.
When drafting the payment terms of a license agreement, you need to include clear and detailed provisions so that both parties understand their financial obligations and rights.
The key components include:
Our experienced solicitors can help you structure the payment terms in a license agreement to protect your interests and ensure you receive appropriate compensation for your intellectual property.
Contact us for a free case evaluation and a quote to get started.
Knowing the benefits and risks of exclusive versus non-exclusive license agreements can help you make an informed decision.
Let's have a look at the difference between the two.
As the licensee has exclusive rights, they may be willing to pay higher fees or royalties.
The licensor can ensure the IP is used in a consistent and controlled way, maintaining the quality and reputation of the IP.
The licensee has a competitive advantage because they are the only one with the right to use the IP in the specified territory or market.
The licensor is dependent on one licensee for revenue, which can be risky if the licensee underperforms or fails.
The IP’s market reach may be limited if the exclusive licensee cannot or does not exploit it to its full potential.
If the licensee gets too much control over the IP, it may reduce the licensor’s ability to regain control or license it in the future.
The licensor can grant multiple licenses to different parties, increasing revenue streams and market reach.
The licensor is not reliant on a single licensee, which spreads the risk if one licensee underperforms.
The licensor retains more control over the IP and can continue to use or license it to others.
Licensees may pay lower fees because they do not have exclusive rights.
It may be harder to maintain consistent quality and brand reputation with multiple licensees using the IP.
Over-licensing can lead to market saturation, potentially reducing the overall value of the IP.
First, research the market to understand typical royalty rates in your industry. Look at similar licensing deals to get a benchmark. This will give you a realistic starting point for negotiations and help you understand what is considered fair and competitive.
To evaluate the value of your IP consider factors like its uniqueness, demand, and potential market size.
Higher-value IP can command higher royalty rates.
Additionally, consider the business capabilities and market reach of the licensee, as their ability to successfully commercialise the IP can impact the appropriate royalty rate.
Determine whether the royalty will be a fixed fee, a percentage of sales, or a combination of both.
Percentage-based royalties are common and typically range from 2% to 25%, depending on the industry and IP value.
You should, however, choose a structure that aligns with your financial goals and the nature of your IP.
Consider including upfront fees or minimum royalty payments to secure immediate compensation and ensure ongoing revenue regardless of sales performance. This can provide financial stability and motivate the licensee to achieve higher sales.
Be flexible and open to negotiation.
Consider offering tiered royalty rates that increase with higher sales volumes, or adjust rates based on market conditions and the licensee’s performance.
Being adaptable can help you reach a mutually beneficial agreement.
When drafting or entering into a license agreement, there are many common pitfalls, including:
Consulting with legal professionals can provide additional assurance that your agreement is thorough and legally sound.
Get in touch with us today for a free quote.
A termination clause in a license agreement specifies the conditions under which the agreement can be ended by either party.
The clause outlines specific conditions or events that can trigger the termination of the agreement. Common conditions include:
The termination clause usually requires a notice period, during which the terminating party must inform the other party in advance about their intention to terminate the agreement.
This period allows for an orderly wind-down of activities.
It will also detail the obligations of both parties upon termination. This can include the return or destruction of proprietary information, payment of outstanding fees, and cessation of use of the licensed IP.
Yes, a license agreement can be changed after it has been signed, but all parties must agree.
Changes should be drafted as a written document that clearly outlines changes to the original agreement, referencing the sections being amended and the new terms being introduced.
Both parties must sign the amendment for it to be legally binding.
When you encounter a breach of a license agreement, you should take immediate steps to address the issue and protect your interests.
First, collect all evidence related to the breach. This includes:
Next, send a formal notice to the breaching party.
This notice should clearly explain how the agreement has been violated and refer to specific clauses that have been breached.
It should also ask the breaching party to remedy the situation within a specified time frame.
This step is often required by the contract before any legal action can be taken.
Before resorting to legal proceedings, it's better to attempt to resolve the issue through direct discussions with the breaching party of civil mediation.
These methods can be quicker and less expensive than legal proceedings.
If negotiation or mediation fails, you may need to consider legal action, which could involve:
At Lawhive, our network of experienced corporate solicitors can guide you through this process, providing expert advice and support to resolve the breach effectively.
Contact us today for a consultation and learn how we can assist you with managing license agreement breaches.
Different countries have varying laws and regulations regarding intellectual property. You need to make sure that your IP is registered and protected in the target country to prevent unauthorised use and infringement.
Export control laws govern the export of certain goods, technologies, and services so make sure that the licensed products or technologies comply with both the home country’s export regulations and the import regulations of the destination country.
You also need to consider international tax laws, transfer pricing, business laws and regulations, and anti-bribery and corruption laws.
Lawhive can assist you in drafting or reviewing license agreements by ensuring they are clear, compliant, and protect your interests.
Our experienced solicitors provide custom agreement drafting, thorough reviews of existing contracts, and ensure compliance with relevant laws.
We also offer negotiation support to help you secure favorable terms.
For professional assistance with your license agreements, contact us today to schedule a consultation or learn more about our services.
Quality control in a license agreement makes sure that the licensed intellectual property is used in a way that maintains its value, reputation, and integrity.
Quality control provisions ensure that the licensee adheres to certain standards when using the IP.
This is important for maintaining the brand’s reputation and customer expectations. For example, a brand licensing agreement might include specific guidelines on product quality, packaging, and marketing to ensure consistency.
Quality control helps prevent the misuse of the IP, which can damage the licensor’s brand and market position.
By including regular inspections, approvals, and compliance checks, licensors can ensure that the licensee’s products or services meet the agreed-upon quality standards.
Clear quality control terms can reduce legal risks by setting out specific requirements and consequences for non-compliance.
This helps both parties understand their responsibilities and the potential repercussions of failing to meet quality standards.
Ensuring that the licensed products or services meet quality standards helps maintain consumer trust and satisfaction.
This is especially important for well-known brands that rely on their reputation to drive sales and customer loyalty.
Confidentiality clauses, also known as non-disclosure agreements, are important to help you safeguard your business’s sensitive information.
They:
Competition laws in the UK, also known as antitrust laws, shape how license agreements are structured and enforced. These laws aim to prevent anti-competitive practices and ensure fair, open markets.
Certain clauses in license agreements are closely scrutinised for their impact on competition. For example:
If such clauses unduly restrict market access or create monopolistic conditions, they can be deemed anti-competitive and unlawful.
Agreements that involve price-fixing, market-sharing, or other collusive behaviour are particularly problematic and can lead to severe penalties. The Competition and Markets Authority (CMA) actively monitors and enforces these laws to prevent market abuse.
Both licensors and licensees must ensure their agreements comply with competition laws to avoid legal challenges and potential fines. Seeking legal advice when drafting license agreements is crucial to ensure compliance and protect your business.
At Lawhive, our experienced corporate solicitors can help you navigate these complexities and draft agreements that comply with UK competition laws.
Contact us today for expert advice and support.
To address potential disputes in a license agreement, include clear dispute resolution clauses that outline the steps for handling disagreements.
Make clear whether disputes will be resolved through negotiation, mediation, arbitration, or litigation, and detail the process for each method.
Additionally, include provisions for the appointment of arbitrators or mediators, the venue for proceedings, and the timeline for resolving disputes.
Here at Lawhive, our network of small business lawyers can support your business with license agreements by providing comprehensive legal services that include drafting, reviewing, and updating agreements to ensure they remain compliant with current laws and regulations.
We can assist you with negotiating terms, managing renewals, and handling any disputes that arise, so you can focus on growing your business.
We also make sure that all agreements protect your interests and maximise the value of your intellectual property.
Contact us today to get started.
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